Boehringer Ingelheim has inked a deal with Palatin Technologies worth up to €280 million (about $327 million) biobucks with the aim of developing new retinal disease therapies.
The German drugmaker will work with the New Jersey-based biopharma to create potentially first-in-class therapeutics based on molecules that regulate the melanocortin receptor system. The system is involved in several bodily functions, including inflammation, immune response, metabolism, steroid hormone production and sexual function.
In particular, the research and licensing deal centers around diabetic retinopathy (DR), a complication of diabetes that is a leading cause of blindness for adults.
Palatin has a research program in DR, and more specifically, in diabetic macular edema (DME), a complication of DR that impacts the retina. The biopharma’s pipeline focuses on melanocortin receptor agonists in hopes of developing a differentiated mechanism that targets key drivers of certain diseases.
Boehringer is offering up to $327 million in upfront, development, regulatory and commercial milestone payments, plus tiered royalties, according to an Aug. 18 release.
“Millions of people worldwide face a progressive decline in their independence and connection to the world due to vision loss caused by complications of diabetic retinopathy, such as DME,” Remko Bakker, Boehringer’s head of eye health and research beyond borders, said in the release. “Given the high treatment burden associated with DR, the potential of a melanocortin receptor agonist is a strategic fit with our pipeline focusing on addressing the three main drivers of retinal disease: inflammation, vascular dysfunction, and neurodegeneration.”
“Importantly, this mechanistic approach may also be applicable in retinal diseases beyond DR where high unmet needs remain,” Bakker added.
The German drugmaker has recently upped its efforts in eye health, with four clinical programs in its publicly disclosed pipeline designed to prevent or restore vision loss for impacted patients. Besides DR, the company is particularly focused on wet age-related macular degeneration and geographic atrophy.
Just a few weeks ago, the pharma penned a $1 billion biobucks pact with Re-Vana Therapeutics that centers around the biotech’s ocular drug delivery tech, which is designed to reduce the need for ophthalmic patients to receive regular injections by slowly releasing treatments into the eye.
As for Palatin, the company has one approved product on the market for hypoactive sexual desire disorder. The injection, sold as Vyleesi (bremelanotide), is made to activate melanocortin receptors in the brain to boost sexual desire in premenopausal women.
On the development side, the biopharma’s most advanced clinical program—a dry eye disease drug called PL9643—failed to meet the main goal of a phase 3 study last year. Despite the miss, the company is forging ahead with a new late-stage program for the asset that's slated to start in the first half of next year, according to a corporate presentation (PDF) published in August.
The biopharma is “seeking development and commercial partnerships” for PL9643, according to the presentation.
Since the new pact with Boehringer was announced this morning, Palatin’s stock price has jumped 24% to $6.88 as of 10:30 a.m. ET.